Brief News: XIAO NOODLES first listing plummets, closing down nearly 30% at noon
Guangzhou XIAO NOODLES Catering Co., Ltd. was listed on its first day in Hong Kong, with the opening price dropping 29% compared to the offering price, and closing down 27% at noon. The company's revenue grew by 44% last year, and net profit increased by 32%. In the first half of this year, revenue grew by 33.8%, and net profit surged by 96%. The net fundraising amount is HKD 617 million, mainly used for expanding the restaurant network, brand building, and investing in the food processing industry
The chain noodle shop Guangzhou XIAO NOODLES Catering Co., Ltd. (2408.HK) debuted on the Hong Kong Stock Exchange on Friday, opening at HKD 5, a drop of 29% from the offer price. The decline slightly narrowed afterward, closing at HKD 5.12 at noon, down 27%.
The company offered 97.365 million shares, with the offer price ranging from HKD 5.64 to HKD 7.04, pricing at the highest point. The public offering was oversubscribed by 425 times, while the international placement was oversubscribed by 4 times.
The company reported revenue of RMB 1.15 billion last year, an increase of 44% year-on-year, with net profit rising 32% to RMB 60.7 million. In the first six months of this year, revenue reached RMB 700 million, a year-on-year increase of 33.8%, with net profit soaring 96% to RMB 41.83 million.
The net proceeds from the fundraising amount to HKD 617 million, with 60% allocated for expanding the restaurant network, 10% for brand building and enhancing customer loyalty, 10% for investment in the upstream food processing industry, and the remaining 10% for general working capital
